CPI index for March - Inflation Holds Steady in March as Shelter and Gasoline Costs Rise

The cost of living in America rose at a steady pace in March, with the Consumer Price Index for All Urban Consumers (CPI-U) increasing 0.4% on a seasonally adjusted basis, matching February's uptick. Over the past year, prices have climbed 3.5% before seasonal adjustment, outpacing February's 3.2% annual inflation rate.
The main drivers behind March's increase were shelter and gasoline costs, which together accounted for more than half of the overall rise in the index. The energy index jumped 1.1% in March, while the gasoline index surged 1.7%. Consumers felt the sting at the pump, with gasoline prices spiking 6.4% before seasonal adjustment.
Shelter costs, which include rent and owners' equivalent rent, rose 0.4% for the month and are up 5.7% compared to a year ago. Stubbornly high housing expenses have been a key factor fueling inflation, accounting for over 60% of the total increase in core CPI (excluding food and energy) over the past 12 months.
While overall food prices inched up just 0.1% in March, dining out is putting a bigger dent in Americans' wallets. The food away from home index, which covers restaurant meals, rose 0.3% for the month and is up 4.2% over the past year. Grocery prices were flat overall, although some categories saw significant swings - egg prices jumped 4.6% in March, while cereal and bakery products had their largest monthly drop on record, sliding 0.9%.
Underneath the headline numbers, price pressures remain widespread. The index for all items less food and energy, seen as a clearer gauge of underlying inflation, climbed 0.4% in March, continuing an unwelcome trend. Motor vehicle insurance soared 2.6% for the month and is up a staggering 22.2% over the past year. Medical care, recreation, and personal care costs are also markedly higher than a year ago.
A few bright spots emerged amid the inflationary gloom. Used car and truck prices fell 1.1% in March after rising in February. Airline fares, recreation, and new vehicle prices also edged lower for the month. However, any relief for consumers seems fleeting as inflation proves stubborn despite aggressive interest rate hikes by the Federal Reserve over the past year.
With the annual inflation rate accelerating to 3.5% from February's 3.2% pace, Americans are left wondering when they'll feel more reprieve in their budgets. The March CPI report suggests that day may still be a ways off, as the rising cost of living maintains its grip on the economy.


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Episode Transcript

(00:00):
The cost of living in America roseat a steady pace in March, with
the Consumer Price Index for all urbanconsumers CPIU increasing zero point four percent on
a seasonally adjusted basis, matching February'suptick. Over the past year, prices
have climbed three point five percent beforeseasonal adjustment, out pacing February's three point

(00:21):
two per cent annual inflation rate.The main drivers behind March's increase were shelter
and gasoline costs, which together accountedfor more than half of the overall rise
in the index. The energy indexjumped one point one percent in March,
while the gasoline index surged one pointseven percent. Consumers felt the sting at

(00:42):
the pump, with gasoline prices spikingsix point four percent before seasonal adjustment.
Shelter costs, which include rent andowner's equivalent rent, rose zero point four
percent for the month and are upfive point seven percent compared to a year
ago. Stubbornly high housing expenses havebeen a key factor fueling inflation, accounting

(01:03):
for over sixty percent of the totalincrease in core CPI excluding food and energy
over the past twelve months, whileoverall food prices inched up just zero point
one percent in March. Dining outis putting a bigger dent in American's wallets.
The Food Away from Home index,which covers restaurant meals, rows zero

(01:23):
point three percent for the month andis up four point two percent over the
past year. Grocery prices were flatoverall, although some categories saw significant swings.
Egg prices jumped four point six percentin March, while cereal and bakery
products had their largest monthly drop onrecord, sliding zero point nine percent.
Underneath the headline numbers, price pressuresremain widespread. The index for all items

(01:48):
less food and energy, seen asa clearer gage of underlying inflation, climbed
zero point four percent in March,continuing an unwelcome trend. Motor vehicle insurance
soared two point six percent for themonth and is up a staggering twenty two
point two percent over the past year. Medical care, recreation, and personal
care costs are also markedly higher thana year ago. A few bright spots

(02:12):
emerged amid the inflationary gloom. Usedcar and truck prices fell one point one
percent in March after rising in February. Airline fares, recreation and new Vehicle
prices also edged lower for the month. However, any relief for consumers seems
fleeting, as inflation proves stubborn despiteaggressive interest rate hikes by the Federal Reserve
over the past year. With theannual inflation rate accelerating to three point five

(02:37):
percent from February's three point two percentpace, Americans are left wondering when they'll
feel more reprieve in their budgets.The March CPI report suggests that day may
still be a ways off, asthe rising cost of living maintains its grip
on the economy.